The Federal Government has officially directed that Central Bank of Nigeria (CBN) to suspend implementation of the 0.5 percent cybersecurity levy, following opposition from the public.
Minister of Information and National Orientation, Mohammed Idris disclosed suspension of the 0.5 percent cybersecurity levy on Tuesday.
Idris communicated the message after the Federal Executive Council (FEC) meeting held on Tuesday, May 14, 2024,.
The controversial levy had been applied to electronic bank transactions in accordance with the provisions of the Cyber Security Act of 2024. Banks were mandated to levy 0.5% on selected electronic bank transactions.
“The position of the government is that this policy has been suspended, this policy has been put on hold; that is the position of the government for now. It is undergoing some form of review,” said the Minister.
The statement, which was broadcast on TV, did not include further comments from the Minister, particularly regarding what review was being carried out and how long it might take.
The controversial levy was imposed on Nigerians via a circular by the Central Bank on May 6, stating that the deduction and collection of the cyber security levy follows the enactment of the 2024 Cyber Crime (Prohibition, Prevention, etc.) Amendment Act.
This act mandates a 0.5% deduction from the value of all electronic transactions to fund the National Cyber Security Fund, which would be administered by the Office of the National Security Adviser (NSA).
The policy has elicited strong reactions from the National Assembly and Nigerians, criticising it as a threat to economic growth and as another rung in the growing ladder of over-taxation.
